Suppose the capital gains tax is 28 percent and you purchased a house ten years ago for $80,000. If you sold the house today you would get $140,000. Your tax liability would be:A. indeterminate without knowing the inflation rate.
B. $16,800.
C. $39,200.
D. indeterminate without knowing the personal income tax rate.

correct option is B. $16,800.

Explanation:

given data

capital gains tax = 28 percent

time period = 10 year

purchased a house = $80,000

sold house today = $140,000

solution

we get here Capital gain that is getting by the subtracting purchase price from the selling price  

Capital gain = selling price - purchase price   1

put here value and we get

Capital gain = $140,000 - $80,000

Capital gain = $60,000

so here we get Capital Gain Tax Amount that is express as

Capital Gain Tax Amount = Capital Gain × tax rate   2

Capital Gain Tax Amount = $60,000 × 28%

Capital Gain Tax Amount = $16,800

so tax liability would be $16,800

correct option is B. $16,800.

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2. a talk with them

3. ask someone you trust

4. ignore

5. call police

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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